About this episode
(12/15/21) Here's an inside look at the technical parameters we use to set up stop losses on positions in our portfolios. "Setting a stop" is like drawing a line in the sand, beyond which you are not willing to lose money on a stock. Let's look at Apple--a stock that's currently trading at three standard deviations above its moving average--which is very extended, and ripe for a pullback. The first thing you might want to do is take profits...then determine at what point you'd want to remove it from your portfolio. Where are the 20- and 50-DMA? Moving averages work well because they move over time, and indicate previous levels of support--another tool in setting up stop-losses. Stops are not an all-or-nothing proposition; you can reduce just a portion of your holdings in a company, too. We look at previous trend lines for price support. A break in a rising trend line is a key clue in where to place the stop. Don't be lulled into complacency by using trailing averages, which could backfire and stop you out of a stock, right before it takes off again on another run higher. - Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts -------- Get more info & commentary: https://realinvestmentadvice.com/news... -------- Watch the video version of this report by subscribing to our YouTube channel: https://www.youtube.com/watch?v=XUeQ2i-8bTs&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1 -------- Register for our next Candid Coffee: https://us06web.zoom.us/webinar/register/9616369301708/WN_X_zZBPQCQX2VnVXJlvUE5g -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestme... https://www.linkedin.com/in/realinves... #StopLoss #PortfolioManagement #RiskManagement #Apple #Markets #Money #Investing